French Inflation Rate at 6-Month High of 1.1%


French consumer prices are expected to rise by 1.1 percent year-on-year in October 2017 after an increase of 1 percent in the previous month, the preliminary estimate showed. It was the highest inflation rate since April, as food prices rose further while cost of manufactured products fell at a softer pace.

Year-on-year, upward pressure came from: Food (1.6 percent from 1.1 percent in September), of which fresh food (4.5 percent from 1.6 percent) and other food (1.1 percent from 1 percent); energy (4.9 percent from 5.1 percent) tobacco (2.4 percent, the same as in September); and services (1 percent, the same as in September). In contrast, prices of manufactured products fell 0.2 percent, after a 0.5 percent decline in the previous month.

On a monthly basis, consumer prices are expected to increase by 0.1 percent in October, recovering from a 0.2 percent drop in September. This rise should come from a rebound in food prices and a lesser fall in services prices. Energy prices should increase at the same pace than in September: a rise in town gas prices should be offset by a slowdown in petroleum product prices. On the other hand, manufactured product prices should decelerate sharply after an increase in September.

The harmonised index of consumer prices is expected to rise by 1.2 percent from the previous year; and by 0.1 percent from the previous month.

INSEE, France l Chusnul Ch Manan | chusnul@tradingeconomics.com
10/31/2017 10:56:20 AM